Industry Analysis Industry size, classification and statistics Major trends and challenges Major Demand drivers 3C&P: Company SWOT Analysis Financial Analysis 3C&P:Competitor Porters 5 force analysis 3C&P:Customer&Product Product Portfolio Consumer behavior 1 Nishit Chandarana (FT154061) Saket Mohan Jha (FT154039) Findings and recommendation Integrated Marketing Campaign Consumer behavior research
Industry Overview Size of the Industry is 514 million dollars CAGR of the industry that the as a whole is not growing. The Industry can be divided into 3 segments namely Cookies, Crackers and Candy The industry is highly fragmented with about Crackers Industry is growing at an impressive rate and FoodCo should capitalize on it. Candy Industry is growing too but is not a major revenue generator. The demands of the consumer is tending towards healthy eating and therefore they prefer more organic content in their food. Trends Consumers are not ready to skip snacks but eat more healthy natural foods. Organic food Industry has a rapid growth and that is an opportunity Growth is expected in fortified products unity for the different players in the industry. Most companies show a trend of decrement in CAGR. The major challenge is to arrest the decrease in market share for all the payers. Provide satisfactory customer service by the method of efficient food delivery. To improve branding and capitalize in the growth of organic industry.
As the consumer have become more health conscious they are moving towards healthy food. Efficient resource utilization.
Challenges in the Industry Demand Drivers in the Industry Data Analysis Industry growth is flat Margins for the companies are shrinking Tough competition from changing consumer snacking trends
3C&P: Company(Food Co) STRENGTHS WEAKNESS Stream Lined Operations Risk - Averse Decision Making Good Cash on Hand for expansion Less Brand Awareness OPPORTUNITY THREATS New Products with high growth opportunity Threats from Organic Foods Threat from new competitors 3C&P: Competitors(Porters 5 force Analysis)
Force Score Rationale Bargaining Power Of Buyers High 4 Price Sensitive Buyers Switching cost is high Threat of Backward Integration is low Bargaining Power Of Suppliers Less 2 Large number of Players in Market Less margin Threat Of New Entrants High 4 Low Capital Requirement Not much Technical Expertise required Low pre qualification Norms Industry Rivalry High 4 Industry is fragmented Consumer Loyalty is less. Product differentiation is low Exit barriers are high Threat Of Substitute Products Low 2 Less substitutes available Product differentiation is low 3C&P: Customers and Products Organic food Industry has crossed a threshold in 2000 when it was freely available in the super markets Customers bent towards organic food clearly suggests FoodCo to move towards this domain. Public Reports in 2002 have suggested that 7.8 billion dollars were spent on organic food.
Findings and Recommendation Improve Distribution Network by implementing IT Solutions like SAP CRM and SAP SCM which will ultimately increase profit margins. Market Share can be increased by introducing new products in all categories. Integrated Marketing Campaign can launched to revive brand awareness by introducing innovative campaign at all customer touch points like social media, print media, TV ads etc.
Targeted advertising in specific media will help reflect brand character, Advertising and POS Endorsers Get passionate people to Research Industry &Cometiin and build brand salience; POS will help improve brand imagery Suggested Advertising Communication Themes endorse the brand not necessarily high profile celebrity endorsers, but popular individuals who are passionate about what they do Gifting during festivals Gift yourself, Gift others - a perfect gift for the passionate professional Celebrate your Passion professional achievements and milestones (first job, a promotion) - Rewarding yourself with an FC- a timeless masterpiece to celebrate your passion My Passion my pride Inspirational heritage and story of Frederique Constant founders and their values and passion Channels for Advertising Magazines Besides corporate magazines already Business Today and The Week Magazine used, Forbes, Since the TG is now Professionals, lifestyle magazines like Chip, Verve, Tehelka can be added The Little Magazine featuring art, films, documentaries, poetry can be an interesting addition Billboards Outside airports, studios, 5 star hotels IT parks, In-Flight entertainment for international flights bound into India Point of Sales Marketing E- displays and screens At the POS technology enabled electronic catalogues can be used to display various ideas around Passionate. Branded FC collectibles Refine packaging to include a branded collectible with every FC watch Either it can be standard or varying as per the FC collection Examples: A Frederique Constant Stamp, a heart shaped ornament STP and Marketing Mix SWOT and Brand Euity Devanagari Watch Integrated Campaign